We have all heard the statistics—huge numbers of baby boomers will need our services in the coming years, Medicare reimbursement rates will continue to drop, cash is the answer, retail is all the rage. At the very least, diversifying into retail or expanding the retail you already have is probably on your mind. But with audits looming and existing patients and customers to serve, how do you build a successful retail business? What are the right steps and focus areas? Where should you start? What kind of results should you expect? Start at the source of your current business, building sales incrementally based on the needs of the customers already in your store. The health care retail marketplace is full of unique, useful products that can make life more comfortable and activities more enjoyable, enhance athletic performance and lead to quicker recoveries. Most patients and caregivers have no idea about the product possibilities available to enhance their lives and health. It's a great opportunity for you to carry products that are natural additional purchases that will raise the average sales of your store and provide better health outcomes. Ask yourself these questions: Where does my existing business come from? What cash products do customers ask for most often? What disease states or selling categories do my customers need most? What cash products related to those disease states should I carry? What products could my customers use that they don't yet know exist? Once you have figured out what product categories will boost your sales incrementally, the next step is to plan the display. Do you have unused showroom floor space, or can you reconfigure the space you have to add in retail? Do you have space on your cash wrap or near the point of purchase to add impulse or trend items to your product mix? Do you want to add one or two fixtures, or build out a larger space of 500 or 750 square feet? Once you've determined the optimal square footage for your market and store, consider a holistic, traditional retail approach for operating effectively. There are six key elements of successful retail operations, each with a set of considerations.
1. Store environment
Is your store just a warehouse of product options, or does the carpet, paint, size and style of fixtures provide a comfortable environment, enticing customers to browse and buy?
2. Store signage
Do you use three layers of signage in the store? Do you have a visible, branded, recognizable sign outside the store to drive traffic into the store and direct those customers looking for your store specifically? Do you use strong secondary, directional signage in the store so that customers can be directed to specific areas of disease or category areas within the store? And finally, do you use smaller, more focused signage on fixtures or near the cash wrap to call attention to specific trend products or new items in the store?
3. Product mix
Is your product assortment customized to the needs, wants and care needs of your current customers? Do you buy a mix of core, novelty and trend products that drives margin and encourages incremental sales? And finally, do you monitor inventory to avoid running out of core, high-demand products?
4. Merchandising
Is your store easy to shop in? Does traffic flow easily but allow for stops along the way to entice customers with new product or small impulse items? Do you display a mix of fixtures that are functional but encourage sales and boost your brand?
5. Training
Do your staff members inform customers about add-on accessory options for products, such as mobility items, hospital beds or lift chairs? Do you have an ongoing staff training program in place for new products? Have you implemented an incentive program to drive retail sales? Do you have a specific retail training module for your customer-facing employees?
6. Marketing
Have you informed your existing customer base about the addition of specific retail products to your product mix? Have you created and implemented a multifaceted 18-month strategic marketing plan for customers, caregivers and referring community clinicians? Have you implemented a loyalty program to encourage repeat customers? Now that you have your retail space designed, your three layers of signage hung, a marketing campaign driving customers to your store, the right products in your store and your staff ready to sell, what results should you expect? Whether you are starting with one retail fixture, building retail space over time or planning a whole store dedicated to retail, profit is possible. Financial success in retail is about building on your existing profitable lines and selling related products for your customers' needs. It's about analyzing and monitoring the retail science behind your business. And, it's about responding with the right products and inventory management in the right time frame.
